> How doesn't it make sense? Apple Music has fewer paying subscribers than Spotify, Apple Music prices just like Spotify's prices vary per market, Spotify pays out 70% of revenue to royalties but Apple Music is able to pay much more per stream even though it has fewer subscribers.
Because streaming platform do not pay per stream making pay per stream a meaningless metric.
Spotify has ~half of its users using the free tier (with ads) and the other half are subscribers. On average a subscriber generates waaaaay more revenue than free users ( this is visible in Spotify's financial results). Apple does not have a "free" version.
If Spotify were to simply abandon their free version and became paying subscribers only like Apple, pay per stream would almost double but at the end of the month, artists (and Spotify) would get less money. Which is preferable ? More money at the end of the month or higher pay-per-stream ?
On top of that music streaming is very seasonal (total music consumption varies by month) so pay-per-stream is not even a stable metric.
Because streaming platform do not pay per stream making pay per stream a meaningless metric.
Spotify has ~half of its users using the free tier (with ads) and the other half are subscribers. On average a subscriber generates waaaaay more revenue than free users ( this is visible in Spotify's financial results). Apple does not have a "free" version. If Spotify were to simply abandon their free version and became paying subscribers only like Apple, pay per stream would almost double but at the end of the month, artists (and Spotify) would get less money. Which is preferable ? More money at the end of the month or higher pay-per-stream ?
On top of that music streaming is very seasonal (total music consumption varies by month) so pay-per-stream is not even a stable metric.